Zircon on expansion mode
Dehradun-based Zircon Technologies, a label packaging printer and converter has a turnover of Rs 45-crore last year, employs around 200 people. The firm is India’s first HD flexo certified company with an ISO 9001:2008 certification. The firm which started off catering to auto majors has applied for an ISO 14001 certification.
23 Oct 2012 | 4512 Views | By Rahul Kumar
Presently, Zircon which has three printing facilities —two in Dehradun and one in Chennai —and is planning to set-up another printing unit very soon. “We want to have a strong presence in the western region of the country. Since many industries are moving to Gujarat, most likely we will open a printing unit in Gujarat,” said Sanjeev Sondhi, owner of Zircon Technologies.
Zircon has opened three plants in last six years, and each plant required an investment of around Rs 20 cr. The Chennai plant, for instance, was set-up on a 12000 sq/ft area. Today, it awaits an expansion plan whereby the total covered area would swell to 20,000 sq/ft.
Zircon started its production with Mark Andy and has reinstated its faith in it. A new printing press will be added on to the existing arsenal. In addition, Zircon plans to boost its packaging offering with an Omet Varyflex press. “We are targetting two segments, shrink sleeves and board cartons, to provide value-addition for our customers,” stated Sondhi.
Sondhi clarified that value-addition don’t ensure a higher profit margin. “The extra service your provide returns in the form of new business. More often than not, value-additions won’t add an extra dime to your pocket. Huge profit in an open economy is myth. We look for sustainable business and long relationship because now everything is open for print buyers; everyone is free to set the price.”
Sondhi is optimistic about growth and claims that Zircon has been clocking an annual growth rate of 45%. “The first half of 2012 was extremely good for us. The market is growing and a company’s growth depends on that how you serve the market. When the prices of raw material are soaring, it hits the bottom-line of the market; but this can be covered by the top line.”
Sondhi concluded that in order to keep the growth story alive it is important to expand the market. “The per capita consumption of labels in India is low and supply is still higher than demand. We are serving the existing market. If you have to survive then you have to create new markets,” he said.